Cake Palace’s business model is mainly designed for wholesale marketing. But recently, after opening the retail shop, Cake Palace is dealing with both retail and wholesale markets. When opting for diversification of marketing models, there is something we saw coming. There is an involving responsibility of facilitating retail business.
The first thing that Cake Palace has had to do differently, after adding a retail shop, is expanding variety of confectionery products. Unlike wholesale market which needs few types of products, but in bulky, retail customers want a `little bit of everything`. Thus, we have to bake many varieties of products and add non-bakery products. Some of the non-bakery products I started selling were margarine, coffee, soft drinks, bottled water, and sugar. As for baked products, I had to sell more than the ten products that the wholesale shop sells. Unfortunately, all the bakers focused on the wholesale products only. I had to request and insist the bakery to widen variety types of confectionery products. Although, they later started baking many types of products, the challenge was to maintain the same quality of confectionery. Bakers of wholesale products are usually exhausted after work, as such, adding more work on their shoulders cannot keep the quality consistent. Cake Palace had to start searching for another baker.
After weeks of waiting and searching, Cake Palace has finally found a baker. He will specialize in confectionery products. He will only bake for the retail shop, and he working timetable will be different from that his colleagues. Normal working routine for Cake Palace bakers is working on day shifts for a week, and night shift for next week. As for the confectionery chef, however, he will only be working for day shifts, because, retail products are not bulky enough to demand heavy production at night.
In a couple of week that the retail shop has been operating, there have been a lot of positive outcomes. The retail shop needs few employees, and calculating profit is a lot easier than calculating profit for the wholesale shop. Addition of a confection chef should be an extra stride of Cake Palace embracing retail marketing. If we grow well, Cake Palace may start opening more retail branches in town.
Below; enjoy pictures of some of the products that the confectionery chef made during baking exhibition.